India’s central bank announced that banks’ cash balances stood at ₹7.97 trillion on February 2, with government surplus recorded the same day. The Reserve Bank of India (RBI) also reported refinancing of ₹130.92 billion, while banks borrowed ₹6.18 billion via the Marginal Standing Facility (MSF).
The Reserve Bank of India (RBI) released key liquidity data for February 2, highlighting the state of cash balances and borrowing activity within the banking system. According to the central bank, banks’ cash balances were reported at ₹7.97 trillion, reflecting strong liquidity levels.
Key Highlights
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Cash Balances: Banks held ₹7.97 trillion in cash balances with the RBI on February 2.
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Government Surplus: The government recorded a surplus on the same date, adding to liquidity conditions.
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Auction Position: RBI confirmed that cash balance with the central bank for auction was nil as of February 2.
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Refinancing Activity: The central bank reported refinancing worth ₹130.92 billion, supporting liquidity management.
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MSF Borrowing: Indian banks borrowed ₹6.18 billion through the Marginal Standing Facility (MSF), indicating short-term funding needs.
These figures underline the RBI’s active role in managing liquidity and ensuring stability in the financial system, while also reflecting banks’ reliance on short-term borrowing facilities to meet immediate requirements.
Sources: Reuters (RTRS), Reserve Bank of India (RBI).